Auto Insurance Costs, Payment Trends

The average cost of credit on monthly motor-insurance payments fell from 10.6% to 9.7% between August 2024 and August 2025 as insurers simplified payment plans and reduced instalment costs, though fewer companies now offer monthly instalments and the market is concentrating around an 11‑month plan. Auto premiums vary widely by state — for example, North Carolina full coverage averages about $102/month while New Jersey averages about $252/month — and different reports cite national averages that vary by methodology. Age, driving history and location remain primary price drivers (teens face the highest rates; NC teen drivers roughly $206/month versus about $349/month for NJ teens) and violations or accidents increase premiums. Coverage choices and deductibles materially affect costs, and uninsured/underinsured motorist exposure matters in states with higher uninsured-driver rates (Nevada ~11.1%, Illinois ~15.2%). A recent market trend is the rise of “no money down” or deferred first-payment policies — often for a modest premium increase and enabled by digital verification — which supplement existing monthly instalment options. Consumers are advised to compare personalized quotes across multiple carriers (examples cited include CSAA/AAA, NJM, Mercury, GEICO, Erie, Nationwide and Travelers) and review independent ratings before buying.